BILL NUMBER: AB 2817	CHAPTERED  09/24/00

	CHAPTER   608
	FILED WITH SECRETARY OF STATE   SEPTEMBER 24, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 23, 2000
	PASSED THE ASSEMBLY   AUGUST 30, 2000
	PASSED THE SENATE   AUGUST 29, 2000
	AMENDED IN SENATE   AUGUST 28, 2000
	AMENDED IN SENATE   AUGUST 18, 2000
	AMENDED IN ASSEMBLY   MAY 10, 2000
	AMENDED IN ASSEMBLY   APRIL 6, 2000

INTRODUCED BY   Assembly Member Honda
   (Coauthor:  Assembly Member Dutra)

                        FEBRUARY 28, 2000

   An act to add Chapter 7.2 (commencing with Section 11786) to Part
1 of Division 3 of Title 2 of the Government Code, relating to
information technology, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2817, Honda.  Information technology:  innovation projects
grant program.
   Existing law sets forth the duties of the Department of Finance in
generally supervising matters concerning the financial and business
policies of the state, and sets forth the duties of the Department of
Information Technology in overseeing the information technology
activities of the state.
   This bill would require the Department of Finance and the
Department of Information Technology, jointly, no later than 3 months
from the date of the enactment of the 2000-01 Budget Act, to
promulgate guidelines and a standard form for applications by certain
state agencies for grants for information technology innovation
projects.  It would require applications submitted under these
provisions to include specified information.  It would require the
Information Technology Innovation Council, which would be established
pursuant to the bill, to evaluate the applications and make
recommendations to the Department of Finance and the Department of
Information Technology.  The bill would require the Department of
Finance to award the grants according to those recommendations, and
would require the Department of Finance and the Department of
Information Technology to report on various aspects of the projects
funded by the grants to specified legislative committees at specified
intervals.
  This bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  It is the intent of the Legislature in enacting this
act to provide for the awarding of grants for qualifying information
technology innovation projects from funds appropriated for that
purpose in the annual Budget Act.
  SEC. 2.  Chapter 7.2 (commencing with Section 11786) is added to
Part 1 of Division 3 of Title 2 of the Government Code, to read:

      CHAPTER 7.2.  INFORMATION TECHNOLOGY INNOVATION GRANTS PROGRAM

   11786.  (a) The Information Technology Innovation Council is
hereby established in state government.
   (b) The council shall be composed of the following members:
   (1) Two representatives from the Governor's office.
   (2) Two agency secretaries, appointed by the Governor.
   (3) The chief information officer of the state.
   (4) The Director of Finance.
   (5) A Member of the Assembly, designated by the Speaker of the
Assembly.
   (6) A Member of the Senate, designated by the Senate Committee on
Rules.
   (c) The council shall meet at least quarterly.
   (d) The Governor shall appoint a member of the council as its
chairperson.
   (e) Council members who are Members of the Legislature shall
perform the duties of council members to the extent that those duties
are not inconsistent with their duties as Members of the
Legislature.
   11786.1.  (a) (1) No later than three months from the date of the
enactment of the 2000-01 Budget Act, the Department of Finance and
the Department of Information Technology, jointly, shall promulgate
guidelines for grant applications under this chapter, and create a
standard application form, to be distributed to state agencies.
   (2) The departments shall jointly review and revise, as necessary,
the guidelines and application form no later than September 1 of
each subsequent year.
   (b) (1) A state agency may submit to the Department of Information
Technology an application for funding for a proposed information
technology innovation project, which shall include all of the
following:
   (A) A description of the proposed project.
   (B) A detailed justification for the proposed project.
   (C) A long-range plan for the use of the proposed new information
technology innovation.
   (D) A detailed explanation of how, if applicable, the proposed new
information technology will improve the delivery of governmental
services to the public.
   (E) A detailed explanation of how the proposed information
technology will be integrated with existing program service delivery
methodologies.
   (F) The estimated costs for development and implementation of the
project and anticipated ongoing costs beyond the grant period.
   (G) An implementation schedule for a funded project.
   (H) A description of what efforts, if any, were made to share the
cost of the project with other departments that use similar
information technology or have similar program needs.
   (I) A description of any business process reengineering efforts
planned or conducted in support of the project.
   (2) The Department of Information Technology shall review
applications submitted pursuant to this section to confirm that each
is in the form required by, and complies with, the guidelines
promulgated pursuant to subdivision (a), and shall forward them to
the Information Technology Innovation Council.
   (c) For purposes of this chapter, an "information technology
innovation project" or "project" means an information technology
project that satisfies one or more of the following criteria:
   (1) Maximizes customer satisfaction.
   (2) Encourages or increases access to services.
   (3) Has interagency or statewide participation.
   (4) Demonstrates breakthrough improvements in business efficiency.

   (5) Results in information technology capabilities that are
transferable to multiple agencies.
   (6) Provides a demonstration of a technology's capabilities within
the context of state programs.
   (7) Combines multiple technologies in ways that improve state
functions.
   11786.2.  (a) The Information Technology Innovation Council shall
evaluate competing project applications based on the guidelines
established pursuant to Section 13161, and shall make recommendations
to the Department of Finance and the Department of Information
Technology based on those evaluations.  The council may rank its
recommendations in order of priority.
   (b) The Department of Finance shall award grants from funds
appropriated in the annual Budget Act for the purposes of this
chapter, according to the recommendations made pursuant to
subdivision (a).  The grants shall be awarded only for the projects
recommended by the council and only in the amounts recommended by the
council.
   (c) A grant made pursuant to this section shall be in an amount
that ensures implementation of a project for a maximum of three
years.
   (d) Funding for a proposed project shall be limited to the amount
of the grant provided pursuant to this section.  Any additional
funding necessary for expanding the scope of a project shall be
requested as part of the implementing agency's annual budget
development process.
   11786.3.  (a) No grant approved under this chapter may be funded
sooner than 30 days after written notice is provided by the
Department of Finance to the Chair of the Senate Committee on Budget
and Fiscal Review, the Chair of the Assembly Committee on Budget, the
Chair of the Joint Legislative Budget Committee, the Chair of the
Senate Committee on Appropriations, the Chair of the Assembly
Committee on Appropriations, and the chairs of the relevant policy
committees in the Senate and the Assembly.
   (b) The notification provided pursuant to this section shall
include all of the following:
   (1) A brief description of the grant proposal.
   (2) The estimated cost of the proposed project.
   (3) A description of improved service delivery or other project
goals that are estimated to result from the proposed project.
   (4) An implementation schedule for the proposed project.
   11786.4.  (a) The Department of Finance shall provide funding for
an outside vendor to conduct an independent evaluation of projects
implemented pursuant to this chapter, and report these findings at
least annually to the Chairs of the Senate Committee on Budget and
Fiscal Review, the Assembly Committee on Budget, the Joint
Legislative Budget Committee, the Senate Committee on Appropriations,
and the Assembly Committee on Appropriations, and the chairs of the
relevant policy committees in the Senate and the Assembly.
   (b) The Department of Finance shall provide quarterly reports to
the chairs of the legislative committees described in subdivision
(a), listing the allocations made from the Information Technology
Innovation Fund, and identifying the department, the project, and the
amount for each allocation.
   (c) The Department of Information Technology, in cooperation with
the Department of Finance, shall provide, on or before January 1 of
each year, to the chairs of the legislative committees described in
subdivision (a), a report summarizing the results of the funded
projects.  The report shall describe all of the following for each
funded project:
   (1) The project's purpose.
   (2) The project's expected and actual accomplishments.
   (3) The actual costs of the project.
   (4) The results of any independent review of the project.
   (5) The future next steps, if any, for the project.
   11786.5.  This chapter shall not apply to the University of
California, the California State University, the State Compensation
Insurance Fund, community college districts, or the judicial or
legislative branches of state government.
   11786.6.  Funding for this chapter shall be subject to
appropriations made for that purpose in the annual Budget Act.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order that grant funds appropriated for the purposes of this
act may be allocated at the earliest possible time, it is necessary
for this act to take effect immediately.
